RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        3 November 2005
      DOCKET NUMBER:  AR20050011557


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Mr. Ronald DeNoia                 |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Thomas D. Howard, Jr.         |     |Chairperson          |
|     |Mr. John Infante                  |     |Member               |
|     |Ms. Carmen Duncan                 |     |Member               |

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, that her student loans be repaid.

2.  The applicant states that she was informed that, upon enlistment, all
of her student loans would be repaid by the Army.

3.  The applicant provides a SallieMae Loan record; and three SallieMae
Student Loan forms.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the Army Reserve on 14 May 2004, for a period
of 8 years under the Delayed Entry Program (DEP).  On 17 June 2004 she
requested discharge from the DEP for the purpose of enlisting in the Army
with participation in the US Army Station/Unit/Area/Command Enlistment
Program (Option 9B) and the US Army Loan Repayment Program (Option 9C).

2.  The seven page "Statement for Enlistment" (United States Army
Enlistment Program) shows that the applicant enlisted for program 9B, U.S.
Army Station/Unit/Area/Command Enlistment Program and program 9C, U.S. Army
Incentive Enlistment Program (US Army Loan Repayment Program). This form is
signed by both the applicant and the counselor.

3.  Item 32 (Specific Option/Program Enlisted for) of the applicants DD
Form 1996 (Record of Military Processing) shows the entries "IAW AR 601-
210, Chapter 9, Program 9B United States Army Station/Unit/Area/Command
Enlistment Program" and "9C United States Army Incentive Enlistment
Program". There are no entries in the remarks section of this form
indicating the applicant's loan eligibility under the Loan Repayment
Program.

4.  On 31 August 2005 an advisory opinion from the Chief, Education
Incentives Branch, US Army Human Resources Command, recommended disapproval
of the applicant's request.

5.  The advisory opinion stated that the loan totaling $8,757.27 did not
qualify for repayment under the LRP because it was a Signature Student Loan
and not made, insured or guaranteed under Title IV Part B, D, or E of the
Higher Education Act.

6.  In addition, the advisory opinion stated that payment of loans that do
not qualify would be in violation of the law governing the LRP and that
there are no exceptions to the law.

7.  A DD Form 2366 (Montgomery GI Bill Act of 1984) shows that the
applicant was disenrolled from the Montgomery GI Bill on 14 May 2004.

8.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment
Program) prescribes eligibility criteria governing the enlistment of
persons, with or without prior service (PS), into the Regular Army (RA) and
the USAR.  Chapter 9 (Enlistment Programs/Options) indicates that these
programs/options are designed to merge valid Army requirements with
personal desires.

9.  AR 601-210, in pertinent part, contains guidance on enlistment option
program 9C (Bonus/Army College Fund/Loan Repayment Program).  It contains
specific guidance pertaining to the LRP and indicates that the government
will repay a designated portion of any loan incurred that was made,
insured, or guaranteed under part B of the Higher Education Act of 1965
(Guaranteed Student Loan) or any loan under part E of such act (National
Direct Student Loan) after 1 October 1975 and before enlistment into the
Regular Army.

10.  AR 601-210 also provides program processing procedures that require
Army Guidance Counselors to accomplish specific counseling and
administrative actions in connection with processing members enlisting with
the LRP incentive.  These actions include ensuring members are disenrolled
from the GI Bill; verifying that members have qualifying loans; and
advising members of any loan that is not eligible.

11.  The regulation further states that Guidance Counselors are
specifically required to confirm they accomplished all the processing
procedures by making the appropriate entries in the DD Form 1966.  This
includes a statement advising members of any loan he or she has that is not
eligible for repayment and ensuring the applicant’s acknowledgement of this
fact is also recorded in the remarks section of the DD Form 1966.

12.  The Loan Repayment Program is a Department of the Army enlistment
option authorized by Public Law 99-145.  This option is designed to
increase Test Score Category I-IIIA accessions.  Loans that qualify for
repayment are Guaranteed Student Loan/Stafford Loans, National Direct
Student Loan/Perkins Loans, William D. Ford Loans, Supplemental Loans for
Students, Federally Insured Student Loans (FISL), Parent Loan for
Undergraduate Students (PLUS), Auxiliary Loan Assistance for Students
(ALAS), and consolidated loans which fall under Title IV, Part B or E of
the Higher Education Act of 1965, or William D. Ford Loan.  Before entering
active duty, the loan must not be in default.  The borrower is responsible
for obtaining a deferment/forbearance with the loan holder and the loan
must remain in good standing throughout the repayment process.  Active Army
LRP participants earn their first loan repayment after completion of a full
year of active duty and for each full year thereafter, up to 3 years.
Payment of 33 1/3 percent or $1,500, whichever is greater, is authorized
annually to the loan holder on the total remaining original outstanding
principal balance.  The Government will not make any payments to the
soldier or reimburse a soldier if he or she pays off a student loan.  The
Government will only pay the lending institution.

13.  Title 10, U.S. Code, section 1552, the law which provides for the
Board, states that “The Secretary may pay, from applicable current
appropriations, a claim for the loss of pay, allowances, compensation,
emoluments, or other pecuniary benefits, or the repayment of a fine or
forfeiture, if, as a result of correcting a record under this section, the
amount is found to be due the claimant on account of his or another’s
service in the Army, Navy, Air Force, Marine Corps or Coast Guard, as the
case may be.”

DISCUSSION AND CONCLUSIONS:

1.  The applicant’s loan does not meet the criteria established by law;
however, that is not the overriding factor in this case given the equity
considerations and the resultant injustice.

2.  A careful review of the evidence of record reveals that the DD Form
1966 and "Statement for Enlistment" clearly established a contractual
agreement, between the applicant and the Army, that she would receive LRP
benefits in connection with her active duty enlistment.

3.  Although it is clear that the "Statement for Enlistment" specified the
types of loans for which LRP benefits were authorized, there is no
indication that the applicant was ever advised of these specific provisions
of the LRP or of the specific criteria required for a loan to qualify for
repayment under the law governing the LRP.

4.  By regulation, Army Guidance Counselors are required to verify that a
member enlisting for the LRP has qualifying loans and to advise those
members if any loan is not eligible for repayment.  Further, these service
representatives must confirm these actions were accomplished by making the
appropriate entries in the enlistment contract or associated documents.
5.  Notwithstanding the fact that the "Statement for Enlistment" outlined
the legal criteria for repayment under the LRP, the applicant’s enlistment
contract and associated documents contain no entries verifying that she was
ever properly counseled in regard to the legal loan repayment restrictions.


6.  Further, the record gives no indication that an Army Guidance Counselor
ever verified that the applicant’s loan did or did not qualify for
repayment under the LRP. There is no evidence to show that this
verification was ever made a part of the record with the required entries
being made in the enlistment contract prior to the applicant entering
active duty.

7.  In view of the above it is determined that the applicant was improperly
counseled in regard to LRP benefits and it that it would be appropriate to
rectify this injustice at this time.  Therefore, in the interest of justice
and equity, it would be appropriate to provide the applicant the LRP
benefits outlined in her enlistment contract as if her loan qualified for
repayment under the law.

BOARD VOTE:

__tdh___  __ji____  __cd____  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to
warrant a recommendation for relief.  As a result, the Board recommends
that all Department of the Army records of the individual concerned be
corrected by: amending the applicant’s enlistment contract to include the
sentence, “If a student loan is accepted by the official processing you for
enlistment as payable under the LRP and the Government fails to verify that
the student loan accepted actually is eligible under the Higher Education
Act of 1965 and such failure results in nonpayment of the loan by the LRP
or the repayment or default of the loan, the Army Board for Correction of
Military Records may pay the loan, at its sole discretion, in accordance
with Title 10, U.S. Code, section 1552.”


2.  As a result of the above correction the Defense Finance and Accounting
Service (DFAS) shall remit payment to the applicant of the total amount of
the loan, in the amount of $8,757.27, to which she is entitled as a result
of this correction.  The applicant will submit the appropriate evidence
(promissory notes, etc.) to the DFAS to determine the amount due, if
required.



                                  Thomas D. Howard, Jr.
                                  ______________________
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20050011557                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051103                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |128.1400                                |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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